Government bonds, also known as sovereign bonds, are debt securities issued by a government to finance its spending. They are considered low-risk investments because they are backed by the full faith and credit of the issuing government. Canada government bonds are particularly attractive to investors because of Canada’s strong economy and stable political environment.
There are several benefits to investing in Canada government bonds. First, they offer a competitive rate of return. Second, they are relatively low-risk investments. Third, they are exempt from provincial and municipal income taxes.